PharmaKinetics Laboratories Inc.
First-quarter revenues plummeted 33 percent at this Baltimore-based drug development and testing company, to $4.5 million compared with the same period last year. PharmaKinetics attributed the drop to the close of its Clinical Trials Division and a general slowdown in the generic-drug industry.
The company posted a first-quarter loss of $768,778, compared with a loss of $393,493 a year earlier. Revenues at PharmaKinetics' International Bio Research Division based in Germany rose 40 percent compared with the first quarter of 1989.
The company, which filed for Chapter 11 bankruptcy protection in mid-November, also reported entering into what it called a "long-term cash collateral agreement" with secured creditor Maryland National Bank. The company said it will be permitted to use all cash collateral "to meet normal operating expenses as long as minimal levels of collateral are maintained."
"We get to use our receivables, all our receivables, as they come in," said Joel I. Sher, the company's attorney.
"Basically [the agreement] allows us to operate the business in the ordinary course without disruption to employees, clients or anybody," Mr. Sher added.